A long list in M & A refers to a list of candidates selected under a certain criterion (candidate for acquisition from the viewpoint of transfer request, candidate for assignment from viewpoint of purchase request) or candidate for acquisition say. Also, it lists companies that are supposed to be synergy by M & A. A list that lists the target selling destinations when doing M & A is the long list, but in the long list, the industry type, area, scale, planned amount of acquisition etc. are stated with very loose standards. Generally, about 20 companies will be posted on the long list. Based on this long list, the client and the M & A advisor will discuss and decide the priorities of the consultation destination. After narrowing down the company by the long list, confirm the hope etc of the seller / buyer and narrow down the candidate destination to about 5 to 10 companies. Those that narrow down based on such certain conditions are called “short lists”.
Companies that use M & A are increasing
In recent years, many companies have fallen into management difficulties and are forced to go bankrupt or merger, but companies that use M & A are increasing so much. And it is expected that demand will increase in the future. Making a short list from a long list will be done so that good synergies will be born. Many cases are used as relief measures, but companies that have suffered a lot of management difficulties are saved for that reason. Many companies are established day by day, but in the shadow there are companies that many companies have fallen into management difficulties and become mergers and bankruptcies, SMEs companies are particularly susceptible to the recession. Therefore, the number of cases where management uses M & A is increasing every year, and managers need to learn particularly about M & A and knowledge about company sale. And when transferring your company under good conditions, it would be helpful to have knowledge of M & A such as long lists and short lists.